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Home My WebLink About1985 Financial Statement June 30a TOWN OF MARANA, ARIZONA GENERAL PURPOSE FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1985 x� ,. . „� _� <�:� .J�:.� � u� 1 s 1va� � TOWN OF MARANA, ARIZONA YEAR E^JDED J UNE 3 0, 19 8 5 TABLE OF CONTENTS EXHIBIT Accountants' report General purpose financial statements: 1 Combined halance sheet, all fund types and account groups 2 Combined statement of revenues, expenditures and changes in fund balances, all governmental fund types 3 PAGE 1 2 �� 4 5-11 Combined statement of revenues, - expendi�ures and changes in fund balances, budget and actual, general and special revenue fund typzs Footnotes to combined financial statements � "�'�� r;;.:. _ ., _ _ _ _ � Et�t'�>�t�''� � Honorable Mayor and Town Council Town of Marana Marana, Arizona We have examined the combined financial statements of the Town of -Marana, Arizona, as of and for the year ended June 30, 1985, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accor- dingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion the combined financial statements referred to abave present fairiy the financial position of the Town of N,arana, Ari�ona, at June 3U, 1985, and the results of its operaticns for the year then ended, in conformity with g-enerally accepted accounting principles applied on a basis consistent with 'that of the preceding year. - s �av�•0 6u + � August 22, 1985 1 �- TOWN OF MARANA COMBIN�D BALANCE SHEET ALL FUND TYPES AND ACCGUNT GROUPS - EXHIBIT 1 JUNE 30, 1985 Governmental Fund Types Special General Revenue � ; ;i Assets Cash Accounts receivable Due from other funds (Note 4) Amounts to be provided Fixed assets (Note 2) Total assets Liabilities and Fund Equity Liabilities: Accounts payable and accrued expenses Due to other funds (Note 4) Deferred revenue Long-term debt (Note 3) Total liabilities Commitments and contingencies (Notes 3 and 6) Fund equity: Investment in fixed assets Unreserved fund balances Total fund equity Total liabilities and fund equity $ 25,036 $ 33,006 10,264 15,424 14,919 18,065 $ 50,219 $ 66,495 $ 27,314 $ 7,945 18,065 14,919 45,379 22,86� 4,840 43,631 4,840 43,631 $ 50,219 $ 66,495 F � � � . � � General Fixed Assets $ 454,240 $ 454,240 General Long- Term Debt 2 $ 454,240 454,240 296,961 48,471 53 454,240 502,711 350,740 $ 454,240 $133,122 $ 704,076 $ 468,�30 $133,122 $133,122 Totals (Memorandum Only) 1985 1984 $ 58,042 $ 118,811 25,688 30,076 32,984 17,704 133,122 4,778 454,240 296,961 $ 704,076 $ 468,330 $ 35,259 $ 26,637 32,984 17,704 68,471 $133.122 133,122 4,778 133,122 201,365 1Z7,590 See footnotes to financial statements. TOWN OF MARANA COMBINED STATEMENT OF REVENUES, EXPENDITUKES AND CHANGES IN FUND BALANCES ALL GOVERNMEN�AL FUND TYPES - EXHIBIT 2 YEAR ENDED JUNE 30, 1985 General � Revenues: Taxes Licenses and permits Fines, forfeitures and penalties Grants and contributions on Federal and State prograrns Miscellaneous Total revenues Expenditures: Administration Town attorney Public safety Magistrate court Public works Transportation Capital projects Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance, beginning Fund balance, ending Special Revenue $ 275,974 1,216 26,826 1,944 305,960 71,560 11,203 199,322 24,053 306,138 $ 878,479 878,479 109,051 19,420 755,138 883,609 ( 178) 5,018 $ 4,840 ( 5,130) 48,761 $ 43,631 iGES cial enue Totals (Memorandum Only) 1985 1984 $ 275,974 1,216 26,826 8,479 878,479 1,944 8,479 1,184,439 71,560 11,203 199,322 24,053 9,051 109,051 9,420 19,420 5,138 755,138 3,609 1,189,747 5,130) ( 5,30�) 8,761 53,779 3,631 $ 48,471 $ 256,241 942 26,801 171,673 5,622 461,279 73,998 7,473 191,594 18,682 75,340 20,292 59,514 446,893 14,386 39,393 $ 53,779 See footnotes to financial statements. �, � �� 3 � — TOWN OF MARANA COMBINED STATEMENT OF REVENUES, EXPENbITURES AND CHANGES T_N FUND BALADtCES - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUND TYPES - EXHIBIT 3 YEAR ENDED JUNE 30, 1985 General Fund Revenues: Taxes Licenses and permits Fines, forfeitures and penalties Grants and contributions on Federal and State programs Miscellaneous Total revenues Expenditures: Administration Town attorney Public safety Magistrate court Public works Transportation Capital projects Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance,beginning Fund balance, ending (a) Actual $ 275,974 1,216 26,826 1,944 305,960 71,560 11,203 199,322 24,053 306,138 178) 5,018 $ 4,840 Budget $ 266,920 3C,000 1,200 298,120 69,823 10,800 196,231 27,266 304,120 ( 6,000) 6,000 $ -0- The Town did not budget certain Federal grant revenues and expenditures for Fiscal 1985. Variance Favorable (Unfavorablz) $ 9,054 1,216 ( 3,174) 744 7,840 1.737) 403) 3,091) 3,213 { 2,018 5,822 ( 982 $ 4,840 CHANG�S 3IT 3 Variance Special Revenue Favorable Variance Unfavorable) Favorable Actual Budc�et (Unfavorable) $ 9,054 1,216 ( 3,174) ;,° 744 $ 878,479 ------- �' 878,479 1, 737) 403) 3,091) 3,213 109,051 19,420 ---- 7 5 5 ,13 $ 2.018) ` 883,609 5,822 ( 5►130) �?� n 48,761 -�� $ 43,631 $ 131,707 131,707 $746,772 (a) 746,772 101,753 ( 7,298) 1$,330 { 1,090) 11,624 ( 743,514 (a) 131,707 -0- -0- $ -0- ( 751,902 ( 5,130) 48,761 $ 43,631 See footnotes to financial statements. �" �r, , v; < �� I . .�= , - �� a . , i 4 0 � TOWN OF MARANA, ARIZONA FOOTNOTES TO COMBINED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1985 1. Summary of significant accounting policies: The Town of Marana was incorporated on March 21, 1977, under the provisions of the Constitution of Arizona and the Arizona Revised Statutes. The Town operates under a Council-Mayor form of government. Al1 funds and entities related to the Town that are controlled by the Mayor and Council are included in this annual financial report. This control is determined on the basis of budget adoption, taxing authority, and the ability to issue outstanding debt secured by revenues or which is a general obligation of the Town. The Town provides a full range of services including general governmental administration, legal services, public safety, public works and transportation. The accounting policies of the Town conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies: A. Fund accounting: The accounts of the Town are organized on tne basis of funcls and account groups, each of which is considered a sepaiate accounting entity. The operations of each fund are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into two generic fund types and one broad fund category as follows; Governmental funds: 'General fund - This fund is the general operating fund of the Town. It is used to account for all financial resources except those required to be accounted for in another fund. Special revenue funds - These funds are used to account for the proceeds of specific revenue sources that are :legally restricted to expenditures for specified purposes. 5 �- TOWN OF MARANA, ARIZONA FOOTNOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 1985 I. Summary of significant accountin� policies (continued): Debt"�ervice fund - Although such a fund is normally used �o account for the accumulation of resources for the payment of general long-term debt principal, interest and related costs, the Town has not established such a fund since the long-term debt is primarily the result af lease-purchase agreements that are funded directly from governmental funds with no amounts accumulated. `B. Measurement focus, fixed assets and long-term liabilities: The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a' fund are determined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that ' only current assets and current liabilities are generally included on their balance sheets. Their reportecl fund balance (net current assets) is considered a measure of "available spendab�e resources." Governmental fund operating statements present increases (revenues and other financial sources) and decreases (expenditures and other financial uses) in net current assets, as ap�ropriate. According�y, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the general fixed assets group of accounts, rather than in govern- mental funds. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, curbs and gutters, streets and sidewalks, bridges, and lighting systems, are not capitalized. No depreciation has been pro- vided on general fixed assets. All fixed assets are valued at historical cost. Dona,ted fixed assets are valued at their estimated fair value on the date donated. Long=term liabilities expected to be financed from governmental funds are accounted for in the general long-term debt group of accounts, not in the governmental funds. 6 � � ��::�:.� . �, �. . � . � � � � � TOWN OF MARANA, ARIZONA FOOTNOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 1985 �1. Summary of significant accounting policies (continued): BecausE of thezr sper.ding measurement focus, expenditure recognition of governmental fund types is limited to e:xclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long- term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the general long- term debt group of accounts. The aforementioned two account groups are not funds. They are concerned only with the measur2ment of finaizcial position. They are not involved with measurement of ' results of operations. The ;Town no longer carries any inventory. Supplies needed for operations are now being purchased on an as- needed basis. C. Basis'of accounting: Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accourtting relates to the timing of the measuremen±s made, regardless of the measurement focus applied. The governmental funds are �aintained on � modified accrual basis. The modified accrual basis of accounting recognizes expenditures on an accrual basis, but: revenues are recognized when received, except for : material revenues determined to be both measurable and "available." "Available" meaning collectible within the current period or soon enough thereafter to be used to ';pay liabilities of the current period. D• Budgets and budgetary accounting: The budgets formally adopted by the Niayor and Council are prepared on a basis consistent with generally accepted accounting principles. All appropriations lapse at year end, and the budgetary information reflected on 'the' financial statements represents the original adopted budget for fiscal 1985 with no augmentations. 7 �� j � � 0 TOWN OF MARANA, ARIZONA FOOTNOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED) YE�R ENDED JUNE 30, 1985 l. Summary of significant accounting policies (continued): E'. Encumbrances: Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of `monies'are recorded in order to reserve that portion of the applicable appropriation, is not employed as an extension of formal budgetary integration in the �=general fund and special revenue funds. F Reserves• No reservations of fund balances have been established `by the Mayor and Council at the end of fiscal 1985. °'G:- Compen�sated absences: � � In the governmental funds, the entire accumulated :liability for compensated absences is accrued, since it is difficult to break down long versus short-term amounts. H: Comparative data: `-.Comparative total data for the prior year has been >`presented in the accompanying general purpose financial ' statements in order to provide an understanding of changes:-in the Town's financial position and ope,rations. I': Total., columns on the combined financial statements: FTotal columns on the combined financial statements are � - captioned "Memorandum Only° to indicate that they are : presented only to facilitate financial analysis. Data in these columns does not present financial position or results- of operations in conformity with� generally accepted accounting principles. Neither is such data > comparable to a consolidation. Interfund eliminations have not-been made in the aggregation of this data. ;; S : s� $; � 'k ' . . . . � y� " , � �' � � � �� 2z r � � � . . . TOWN OF MARANA, FOOTNOTES TO COMBINED FINANCIAL YEAR ENDED JUNE 2. 'Changes.in general fixed assets: Balances at June 30, 1984 Additi�ns Del�tions Balances at June 30, 1985 ARIZONA STATEMENTS (CONTINUED) 30, 1985 $ 296,961, 168,316 ( 11,037 $ 454,240 The 'Town- does not currently maintain records that would enable<a breakdown of the changes by type of asset. Such information is in the process of being accumulated. In addition, the general fixed assets include the capitaliza- `tion of certain flood control improvements aggregating approximatley $123,500. The remainder of the assets ` represent primarily equipment under capital leases. `3.. Changes'in general long-term debt: following is a summary of general-long term debt ransactions for fiscal 1985: Capital Leases Balances at July l, 1984 Capital leases entered Retirements Balances at June 30, 1985` Land (a) Contract(b) Total $146,946 ( 18,349 $128,597 $ 4,778 253) $ 4,52� $ 4,778 146,946 ( 18,602) $133,122 The following is a schedule by years of the future minimum lease payments under capital leases together with the present value of the net minimum lease ;payments as of June 30, 1985: Year ending June 30: 5986 1987 1988 ' 1989 1990 Total net minimum lease payments Less amount representing interest 'Present value of net minimum lease payments u � ,� ��< $ 37,448 37,448 37,448 35,651 3,350 151,345 ( 22,748 $128',597 . TOWN OF MARANA, ARIZONA FOOTNOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 1985 3. Changes in general long-term debt (continued): (b)<In 1979, the Town borrowed $7,134 at 7g interest from the S�ate of Arizona to purchase a 2.5 acre parcel of land. Principal and interest is payable in yearly installments of approximately $575. =4. `Required individual fund disclosures: Individual interfund receivables and payables at June 30, 1985'were as follows: Interfund Interfund Receivable Payable � ' Special revenue funds: Highway User $ 18,065 $ 5,108 _ 'FEMA 18,065 27,876 General fund 14,919 18,065 , $ 51,049 $ 51,049 °5. ��-Pension��plan: � The public`safety personnel participate in the Arizona Public Safety Personnel Retirement System. Contributions by the Town to the System are subject to actuarial valu�tions and the Town's position in the System at June 30, 1985, has not yet been determined. Contributions for fiscal 1985 by the Town approximated $"1,300. 6 Contingencies: � >The;; Town is currently in the process of having audits performed ;on certain grant programs. Any contingent fr liabilities to grantors, if any, as a result of these � audits have not yet been determined. Town management feels no such liabilities exist at June 30, 1985. The Town is currently defendant in a wrongful death lawsuit ; that is in the early stages of discovery. No dollar figure ; has been established in the complaint; however, the attor- ney f.or the Town's insurance carrier feels that when determined; the damages asked for by the plaintiff will be substantial. Still, it is the opinion of this attorney, a ',that the `Town's insurance coverage will be adequate to � handle this claim. � �r $ 10 � � � � a� � � � � t �` � t�"�t ,a, � TOWN UF MARANA, ARIZONA FOOTNOTES TO COMBINED FINANCIRL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 19$5 �6. Contingencies (continued): The Town is` continuously liable in respect to other lawsuits and claims incidental to the ordinary course of its opera- tions. At June 30, 1985, it is the opinion of Town management, based on the advice of the Town Attorney, that such pending litigation would not have a material effect on the Town's financial position. ��> � �, ,, ,,. ;. _ 11 , �—�, � � ,� ��- � � _ {